Redress Payments Exempt in Aged Care Means Testing

The Albanese Labor Government is continuing to improve the National Redress Scheme and support for survivors by excluding redress payments from the residential aged care means test.

From 1 January 2025 a survivor's redress payment will be exempt from means testing and not be considered an asset for the residential aged care subsidy.

The exemption will be made through data matching so survivors do not have to disclose their abuse again, should they choose not to do so.

Minister for Social Services Amanda Rishworth said this change ensures survivors are not financially disadvantaged when accessing aged care services.

"The National Redress Scheme is in place to provide best possible outcomes for survivors of institutional child sexual abuse, including removing unintended adverse impacts of any payment they receive as part of redress," Minister Rishworth said.

"Payments received under the Scheme are already not assessed as income for the purposes of social security or aged care means testing, however if the payment is saved or used to buy other assets, it may be included in the asset test like all other assets.

"We're making this change to remove payments from any aged care means test to ensure survivors are not financially disadvantaged when the time comes for them to access aged care services."

Minister for Aged Care, Anika Wells, said the improvements to the National Redress Scheme are in lock-step with proposed aged care reforms, highlighting the Government's commitment to the rights of older Australians.

"In addition to this important change, all older people, including survivors of child sexual abuse, will have a right to access trauma-aware and healing-informed aged care services under our new Aged Care Bill currently before Parliament."

This improvement follows the passing of the National Redress Scheme for Institutional Child Sexual Abuse Amendment Act 2024 in March, completing the implementation of all primary legislative measures from the Australian Government's Response to the Final Report of the Second Year Review of the National Redress Scheme.

The changes include:

• allowing applicants to provide additional information when requesting a review of a finalised application;
• reducing the circumstances where applications from those with a serious criminal conviction must undergo a special assessment process;
• removing restrictions preventing incarcerated survivors from lodging an application; and
• enabling reassessment of finalised applications if a relevant institution later joins the Scheme.

The aged care means test change also comes on National Survivor Day which recognises and commemorates the courage and journeys of survivors of sexual assault and institutional abuse and their supporters across Australia.

Minister Rishworth will today meet with survivors at an event in Melbourne to mark the day.

"First and foremost, our goal is to ensure survivors are placed at the forefront of all Scheme improvements and changes," Minister Rishworth said.

"Entering care and potentially be re-institutionalised can have devastating impacts on survivors of institutional child sexual abuse, by ensuring their redress isn't treated as an asset we are ensuring fairness in their later years"